A former Auckland Council employee has been sentenced to two years and two months in prison for defrauding more than $1 million from the public sector, in what is believed to be one of the largest public sector thefts on record, the New Zealand Herald reports.
Shyamal Sushil Shah, 27, pleaded guilty at the Auckland District Court to one representative charge of obtaining by deception. It is reported that the Judge Kate Davenport denied his requests for home detention and bail pending appeal, calling it a “significant breach of trust”.
NZ Herald reports that the fraud, carried out over a 17-month period while Shah worked as a water network engineer at Watercare, involved 40 fake invoices under bogus entities such as “Gardener Construction” and “Ben Gardener”, with payments totalling $1,039,146 deposited into Shah’s personal account.
“The contractors paid these invoices believing them to be for genuine work conducted by sub-contractors,” the court summary stated as per NZ Herald report. “The fraudulent costs were subsequently included in the contractor’s total project cost. Consequently, the defendant’s fraud increased total project costs, which the victim [Auckland Council] ultimately paid.”
Shah was arrested in November 2023 during what was to be his final week at Watercare before relocating to Australia. No funds had been repaid at the time of sentencing, but he proposed to return roughly half using his KiwiSaver, a loan from his new employer, and financial help from his parents.
Judge Davenport described the parents’ efforts as “an amazing gesture”, adding, “I imagine, as any parent would be, they’re horrified and distressed.”
She noted the profound impact on Shah’s colleagues, stating, “It isn’t too much to say the betrayal by you has left a lasting scar.”
NZ Herald reports Shah’s gambling addiction began at SkyCity Casino and escalated after he became entangled with an underground poker ring. Defence lawyer David Jones KC said Shah was coerced into debt repayment under threat and turned to fraud out of desperation. “Once you’re in, it’s a very difficult place to get out of,” Jones said.
Despite the conviction, Jones noted that Shah has completed 267 hours of charity work, held three new jobs, and remains “very much sought after” in his field.
Judge Davenport granted a 55% sentencing discount for Shah’s guilty plea, prior good character, remorse, rehabilitation efforts, and repayment offer, but emphasised the need for deterrence and denunciation.
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